PAGA Reform 2024: What AB 2288 and SB 92 Changed for California Employers
Many pages about PAGA penalties still describe the pre-2024 rules, with no cure option and no credit for compliance efforts. Both exist now.
For PAGA notices filed on or after June 19, 2024, California's Private Attorneys General Act follows the rules set by AB 2288 and SB 92. The base penalties did not change: $100 per employee per pay period for an initial violation and $200 for a subsequent one. What changed is how much of that total an employer pays. An employer that took "all reasonable steps" to comply can have the penalty capped at a fraction of the maximum, and an employer with fewer than 100 employees can cure violations through the state labor agency.
What didn't change: the per-violation rates
The per-employee, per-pay-period amounts are the same as before the reform: $100 for an initial violation and $200 for each subsequent violation of the same Labor Code section against the same employee. Wage statement violations remain capped at $200 per employee. The reform left these numbers alone and changed how much of the total an employer has to pay.
What changed: caps for employers that took reasonable steps
The main change is a cap tied to the employer's compliance efforts. An employer that can show it took "all reasonable steps" to comply with the Labor Code provision at issue before receiving a PAGA notice pays no more than 15% of the penalty that would otherwise apply.
An employer that takes those steps after receiving a notice, within the statutory window, pays no more than 30%. The law gives no single checklist for "reasonable steps." Courts look at written policies, supervisor and employee training, and periodic payroll audits of the practice at issue.
Small employers can cure violations through the LWDA
Employers with fewer than 100 employees have an option that didn't exist before the reform. After a PAGA notice, the employer can submit a confidential cure proposal to the Labor and Workforce Development Agency (LWDA) within 33 days, and it has up to 65 days from the notice to complete the cure.
If the agency accepts the cure and the employer completes it, the employer can avoid a lawsuit and the penalties for the cured violations. Employers with 100 or more employees can't use this LWDA process, but the reasonable-steps caps still apply to them.
Why no calculator can give an exact PAGA figure
The reform set no flat cap. The reduction depends on facts about the employer: which compliance steps it took, and when. A calculator that doesn't know those facts can't tell you the penalty. Treat any single figure from a tool or an article as the maximum exposure before a reasonable-steps cap or a cure is applied.
Model your exposure
Our PAGA Penalty Estimator computes the base per-employee, per-pay-period total and then applies the reasonable-steps caps and the small-employer cure option from the 2024 reform, so you see the maximum and the reduced figures side by side.
Frequently Asked Questions
Did PAGA reform set a flat dollar cap on penalties?
No. The 2024 reform (AB 2288 / SB 92) did not set a flat dollar cap. It caps the penalty at a percentage of the maximum for employers that took "all reasonable steps" to comply: 15% if the steps came before a PAGA notice and 30% if they came within the statutory window after one.
Does PAGA reform apply to every pending case?
No. The reformed provisions apply to PAGA notices filed on or after June 19, 2024. Notices filed before that date are generally still governed by the prior rules.
What's the cure process for small employers?
Employers with fewer than 100 employees can submit a confidential cure proposal to the Labor and Workforce Development Agency within 33 days of a PAGA notice. If the agency accepts the proposal and the employer completes the cure, penalties for the cured violations can be avoided.
This article is for general information only and is not legal advice. PAGA exposure depends on the facts of each case. Consult an employment attorney before relying on any estimate.